Required:

1.

Complete the following table given below and prepare the journal entry to record income taxes in 2016.

2.	What is Southern Atlantics 2016 net income?

Southern Atlantic Distributors began operations in January 2016 and purchased a delivery truck for $60,000. Southern Atlantic plans to use straight-line depreciation over a four-year expected useful life for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2016, 30% in 2017, and 20% in 2018. Pretax accounting income for 2016 was $380,000, which includes interest revenue of $45,000 from municipal bonds. The enacted tax rate is 40% Assuming no differences between accounting income and taxable income other than those described above Required: 1. Complete the following table given below and prepare the journal entry to record income taxes in 2016 (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.) Tax Rate % | Tax S Recorded as: Pretax accounting income Permanent difference Income subject to taxation Temporary difference Income taxable in current yean 380 380 x 380 x